DMO targets local investors with N135bn bond sale
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DMO targets local investors with N135bn bond sale

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DMO targets local investors with N135bln bond sale

Nigeria through the Debt Management Office (DMO) has concluded plans to raise a total of N135 billion ($429.25 million) through sale of naira-denominated bonds at its April 12 debt sale through the Dutch auction system.

This will be the fourth of such exercise in 2017, according to the DMO in a statement on Wednesday.

It said that it would raise N35 billion bonds, which will mature in 2021; N50 billion maturing in 2027 and N50 billion whose maturity would be in 2037.

All prospective buyers are expected to settle on the day following the issue.

Read also: After one day of staying off work, tanker drivers suspend strike

The bonds are re-openings of previous issues, except the 2037 bond which is a new issue.

Nigeria has opted for the auctions sovereign bonds on a monthly basis to help fund its budget deficit as well as to support the local debt market window

The approach is said to be a viable means of sourcing funds for the N2.36 trillion deficit in the 2017 budget, and has the proviso that half of it will be funded through domestic borrowing.

in late March, two bond auctions were issued whose success is said to have led the debt office to embark on yet another batch of the sales in early April.

 

 

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